Amazon Targets Alibaba In India
The American e-commerce company invests in India to give a tough time to Alibaba in the country
Amazon has entered India to have strong dominance in its e-commerce market. The e-commerce giant had plan right timing to attack in the market whose once major players –Snapdeal and Flipkart –have been already shaken by the invasion of Chinese e-commerce giant, Alibaba.
The local enterprises are already weak and a single blow will leave them tumbling away. The US e-commerce company’s founder and CEO Jeff Bezos made the most out of Indian’s PM Narendra Modi’s latest visit to the US. Mr. Bezos declared a $3 billion investment for its business operations in India.
Not only the investment figure is significant in size but it is also higher than the online retailer’s previous $2 billion investment in the region. However, the more significance of the investment is that it has surpassed the highest investment raised by Indian online retailer Flipkart. Since its business commencement in 2007, the Bengalaru based organization has raised a total $3.2 billion investment till date. But the organization is burning cash rapidly and running out of new ideas to grow business.
Previously commenting on the local online retailer India Value Fund Advisors( IVFA) partner Haresh Chawla stated the Indian organization is facing huge damage as far as its leading management is concerned. The article mentions since the “middle of last year” the company has grown elusively, whereas innovation hasn’t taken place.
Since then, Flipkart has been in the negative light resulting in its devaluation by investors to $11 bn from $15.2 bn. Therefore, Amazon is aiming at two targets; by heavily investing, it’s nudging down space from Snapdeal as well as Flipkart whereas at that same moment it’s preparing a foundation to contest a huge battle with the Chinese E-commerce company Alibaba Group Holding Limited.
The Hangzhou based organization has entered the Indian market by investing in Paytm as well as Snapdeal. It also runs a Business-to-Business (B2B) marketplace in the nation. Amazon is interested to beat Alibaba who has crushed it in its homeland –China. Nevertheless, it has proved to be lucky in the Indian region meeting its own growth objective. Jeff has stated “Our Amazon.in team is surpassing even our most ambitious milestones”
Jeff Bezos’ organization is establishing its biggest software and development facility outside US. Soon, the South Asian country will turn into a battle ground for the huge organizations, the smaller companies like Flipkart and Snapdeal will either strive to make some space for themselves or get crushed by the behemoths.
